No Name, He’s a baaad man

[Image]( EMAIL}/redirect Bad company The next wave of banks reported financials yesterday and the results might make you want to [disregard WHO's warning]( against drinking during the coronavirus. As if you are listening to it anyway... Goldman Sachs, Citigroup, and Bank of America all reported net profit decreases of 46%, 46%, and 45%, respectively, thanks to the impact from the current pandemic. If big banks aren’t safe, who is? Midas touch David Solomon must have made a deal with the devil (apparently the devil hands out private jets now too). Or maybe Goldman’s business model just isn’t as susceptible to a downturn. Despite earning just $3.11 per share compared to analyst estimates of $3.35 per share, Goldman’s [stock price rose yesterday]( during market hours (though it did go red after hours). It turns out that the bank’s trading division had its best quarter for equities and fixed income trading in five-years. Oh, volatility trades...it’s what fin bros dreams (and bonuses) are made of. Fixed income brought in $2.97B, while equities hauled in $2.19B. Firm-wide revenue came in at $8.74B, crushing the $7.92B estimates for Q1. EMAIL}/redirect EMAIL}/redirect Turning to ash The cards didn’t fall quite the same for Citigroup and Bank of America. Loan-loss reserves dragged down earnings as they put up $4.6B and $3.6B, respectively, for anticipated defaults. So the stimulus check won’t solve everyone’s problems... got it. BOA’s quarterly revenue of $22.8B [matched expectations,]( but its main bugaboo, along with the loan defaults, is lost interest income thanks to J-Poww and his buddies at the Fed bringing rates down so low. Citi saw an [increase in trading profits,]( as Goldman did, but it’s loan loss reserve was too much to overcome. The stock price dropped 5.6% yesterday and is down 46% since “the madness” started in March. Not the good kind of madness, but you knew that. The bottom line... It turns out not all banks are created equal. Who knew? Those banks whose business models rely on loans to make money off of interest (JP Morgan) aren’t faring as well as those who make money through transactions, fees, and trading (Goldman). In fact, Goldman’s loan-loss reserve was just $937M while JP Morgan’s was $8.3B. Being a bank that caters mostly to businesses seems to work out in the former’s favor given the current circumstances. How does that Marcus growth initiative look now, DJ D-Sol? EMAIL}/redirect EMAIL}/redirect ☑️ Later, Geek Squad. “It’s not goodbye, it’s see you later.” - Best Buy store managers to their employees on Zoom Best Buy will furlough 51k hourly employees starting April 19, because it turns out that there’s not much need for blue shirts when stores are closed. On the plus side, they get 4/20 off. Doors have been shut to the public since March 22, yet curbside pickup is still being offered. Circuit City’s more successful cousin actually saw sales surge in mid-March, as people rushed to the stores (online) to purchase home office equipment, kitchen appliances, and computers to hunker down for the long haul. In addition to the furloughs, executives [will take pay cuts]( and 401k matches have been suspended. ☑️ Drop it low. Retail sales are going [Ester Dean and Chris Brown]( on 'em. US retail sales [fell 8.7% in March]( which, for those keeping tally at home, is the largest decline since retail sales started being tracked back in 1992. This eclipsed the estimated 8% drop by Reuters, and was much steeper than the 0.4% fall in February before social distancing and lockdowns were a thing. In case you’re wondering, yes, the stats factor in all the toilet paper and frozen pizza purchases you’ve been buying in bulk at your local grocer. Food and bev gained 25% from February to March, but that wasn’t nearly enough to make up for the 50% fall in clothing, 27% drop in furniture, or the six other categories that all dropped over 14%. Now go out and spend that $1200! ☑️ I DECLARE BANKRUPTCY. Frontier (*gets excited that it’s the airline*) Communications (*smile fades away*) filed for Chapter 11 bankruptcy Tuesday. It grew out of the 1984 Ma Bell monopoly breakup and is (was?) the number four telephone company behind AT&T, CenturyLink, and Verizon, but has struggled to compete and maintain its customers. This won’t come as a surprise to some, as the communications company skipped an interest payment to bondholders in March. The telecom company [plans to swap out]( $10B of its $11B in unsecured bonds in exchange for 100% equity in the business and hopes to secure a $460M bankruptcy loan from its lenders. Something tells me that investors aren’t super excited to get in on landlines and dial-up. ☑️ Short circuit. Big changes are a comin’... maybe. Morgan Stanley, Citadel, and Blackrock [are considering changes]( to the US stock market’s circuit breakers, with the goal of decreasing the likelihood of a future halt in trading right after the 9:30 AM opening bell. The task force they’re a part of, was formed after the breakers were triggered four times in March during a ‘rona induced sell-off. The potential change would loosen regulations, allowing trading to occur even if it passes the first limit of 7%, but then halting at the next stop of 13%. The group will study data and it’s possible it might not make any changes at all. If they did, it would need to be approved by the SEC. And you know how they feel about change. EMAIL}/redirect EMAIL}/redirect To get Exclusive Offers make sure you grab your cellphone (which you are probably doing right now) and join our VIP text messaging list (standard text and messaging rates may apply)to make it even easier, if you are on your cell phone now click this Button Below: [SIGN ME UP NOW]( © 2019 PTE.la PTE, LLC (publisher of PTE.la) is NOT registered as an investment adviser nor a broker/dealer with either the U. S. Securities & Exchange Commission or any state securities regulatory authority. Users of this website are advised that all information presented on this website is solely for informational purposes, is not intended to be used as a personalized investment recommendation, and is not attuned to any specific portfolio or to any user's particular investment needs or objectives. Past performance is NOT indicative of future results. Furthermore, such information is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All users of this website must determine for themselves what specific investments to make or not make and are urged to consult with their own independent financial advisors with respect to any investment decision. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. All opinions, analyses and information included on this website are based on sources believed to be reliable and written in good faith, but should be independently verified, and no representation or warranty of any kind, express or implied, is made, including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, we undertake no responsibility to notify such opinions, analyses or information or to keep such opinions, analyses or information current. Also be aware that owners, employees and writers of and for PTE, LLC may have long or short positions in securities that may be discussed on this website or newsletter. Past results are not indicative of future profits. This table is accurate, though not every trade is represented. Profits and losses reported are simulated figures from virtual simulated portfolios. We are engaged in the business of advertising and promoting companies for monetary compensation. All content in our releases is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. Neither the information presented nor any statement or expression of opinion, or any other matter herein, directly or indirectly constitutes a solicitation of the purchase or sale of any securities. PTE.la’s sponsored advertisements do not purport to provide an analysis of any company’s financial position, operations or prospects and this is not to be construed as are commendation by PTE.la or an offer or solicitation to buy or sell any security. Neither the owner of PTE.la nor any of its members, officers, directors, contractors or employees is licensed broker-dealers, account representatives, market makers, investment bankers, investment advisors, analyst or underwriters. Investing in securities, including the securities of those companies profiled or discussed on this website is for individuals tolerant of high risks. Viewers should always consult with alicensed securities professional before purchasing or selling any securities of companies profiled or discussed in our releases. It is possible that a viewer’s entire investment may be lost or impaired due to the speculative nature of the companies profiled. Remember, never invest in any security of a company profiled or discussed in a release or on our website unless you can afford to lose your entire investment. Also, investing in micro-cap securities is highly speculative and carries an extremely high degree of risk. To review our complete disclaimer and additional information, please visit . PTE.la makes no recommendation that the securities of the companies profiled or discussed in our releases or on our website should be purchased, sold or held by investors. PTE.la is owned and operated by PTE LLC. PTE LLC has not been compensated for this specific email, we do have advertisements in this email that we get paid if you click one of the ads (we have not investigated any of the advertisements). Any compensation received by PTE LLC constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. A third party of PTE LLC may have shares and may liquidate, which may negatively affect the stock price. PTE LLC affiliates may at any time have a position in the securities mentioned herein and may increase or decrease such positions without notice which will negatively affect the market. Some of the content in this release contains forward - looking information within the meaning of Section 27 A of the Securities Act of 1 9 9 3 and Section 21 E of the Securities Exchange Act of 1 9 3 4 including statements regarding expected continual growth of the profiled company and the value of its securities. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 it is hereby noted that statements contained herein that look forward in time which include everything other than historical information, involve risk and uncertainties that may affect a company's actual results of operation. A company's actual performance could greatly differ from those described in any forward - looking statements or announcements mentioned in this release. Factors that should be considered that could cause actual results to differ include: the size and growth of the market for the company's products; the company's ability to fund its capital requirements in the near term and in the long term; pricing pressures; unforeseen and/or unexpected circumstances in happenings; etc. and the risk factors and other factors set forth in the company’s filings with the Securities and Exchange Commission. However, acompany’s past performance does not guarantee future results. Generally, the information regarding a company profiled is provided from public sources which we believe to be reliable but is not guaranteed by us as being accurate. Further specific financial information, filings and disclosures as well as general investor information about the profiled company, advice to investors and other investor resources are available at the Securities and Exchange Commission (“SEC”) website www.sec.gov and the Financial Industry Regulatory Authority (“FINRA”) website at www.finra.org. Any investment should be made only after consulting with a qualified investment advisor and reviewing the publicly available financial statement and other information about the company profiled and verifying that the investment is appropriate and suitable. PTE.la makes no representations, warranties or guarantees as to the accuracy or completeness of the information provided or discussed. Viewers should not rely solely on the information obtained in this release or on our website. PTE Team 9 Downing street Newark NJ 07105 USA [Unsubscribe]( | [Change Subscriber Options](